EXHIBIT 12.1
Neiman Marcus, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
| | Successor | | | Predecessor | |
(in thousands, except ratios) | | Forty-
three
weeks
ended
July 29,
2006 | | | Nine
weeks
ended
October 1,
2005 | | Fiscal year
ended
July 30,
2005(1) | | Fiscal year
ended
July 31,
2004(1) | | Fiscal year
ended
August 2,
2003(1) | | Fiscal year
ended
August 3,
2002(1)(2) | |
| | | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | |
Interest on debt | | $ | 214,700 | | | $ | 3,259 | | $ | 23,960 | | $ | 20,851 | | $ | 18,643 | | $ | 20,778 | |
Amortization of debt discount and expense | | 11,740 | | | 44 | | 248 | | 220 | | 254 | | 251 | |
Interest element of rentals | | 21,186 | | | 4,059 | | 22,671 | | 20,757 | | 18,975 | | 17,919 | |
Total fixed charges | | $ | 247,626 | | | $ | 7,362 | | $ | 46,879 | | $ | 41,828 | | $ | 37,872 | | $ | 38,948 | |
Earnings: | | | | | | | | | | | | | | |
Earnings from continuing operations before income taxes, minority interest and change in accounting principle | | $ | 41,150 | | | $ | 69,889 | | $ | 396,714 | | $ | 327,330 | | $ | 203,721 | | $ | 160,300 | |
Add back: | | | | | | | | | | | | | | |
Fixed charges | | 247,626 | | | 7,362 | | 46,879 | | 41,828 | | 37,872 | | 38,948 | |
Amortization of capitalized interest | | 776 | | | 105 | | 538 | | 424 | | 401 | | 312 | |
Less: | | | | | | | | | | | | | | |
Capitalized interest | | (3,446 | ) | | (1,146 | ) | (5,350 | ) | (3,036 | ) | (1,425 | ) | (3,116 | ) |
Total earnings | | $ | 286,106 | | | $ | 76,210 | | $ | 438,781 | | $ | 366,546 | | $ | 240,569 | | $ | 196,444 | |
Ratio of earnings to fixed charges | | 1.2 | | | 10.4 | | 9.4 | | 8.8 | | 6.4 | | 5.0 | |
(1) Fiscal years 2005, 2004, 2003 and 2002 have been adjusted to exclude the operations of Gurwitch Products, L.L.C.
(2) Fiscal year 2002 includes 53 weeks of operations while the other years presented consist of 52 weeks of operations.
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